OANDA Senior Market Analyst Craig Erlam talks about the post-Fed rally in stock markets and whether it's a sign of things to come.
29-07-2022 06:20 GMT
by Craig Erlam
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Oil is surprisingly steady
Oil prices edged higher overnight as the volatility in currency, bond and equity markets passed it by; most of the oil-related data had already been released for the week. So, although the intraday ranges were as wide as ever, ultimately, oil booked only small gains.
29-07-2022 05:39 GMT
by Jeffrey Halley
USD/JPY slump dominates Asian trade
The US dollar selloff continued overnight after weak US GDP data saw it enter a technical recession. However, the US dollar's losses were unevenly distributed.
29-07-2022 05:19 GMT
by Jeffrey Halley
Wall Street rises after GDP decline
US GDP had a nasty surprise for everybody overnight, unexpectedly falling by 0.90%, when market expectations were for a modest 0.50% gain. That marked two consecutive negative quarters of US growth, meaning that for many economists, the US is now in a technical recession.
29-07-2022 04:50 GMT
by Jeffrey Halley
US GDP declines in Q2
The US economy is weakening much faster than anyone expected. The first look at the second quarter showed another negative reading, which was a surprise for most on Wall Street.
28-07-2022 15:13 GMT
by Edward Moya
The yen has surged on Thursday. USD/JPY trades at 134.46, down 1.56% on the day.
Yen jumps on US GDP decline
The US dollar has lost ground against the majors, following a soft US GDP reading earlier.
28-07-2022 12:08 GMT
by Kenneth Fisher
It's been quite the 24 hours in financial markets, one I feel many will be trying to work out for many weeks to come.
The Fed on Wednesday raised rates by 75 basis points, as expected, before leaving as many doors open as possible for September. Chair Powell and his colleagues went for a cocktail of hawkish data dependency with a dovish twist.
28-07-2022 11:33 GMT
by Craig Erlam
Oil turns lower on recession risk
Oil has turned lower since the open, in line with the moves we've seen in equity markets. It would appear the economic reality isn't being lost everywhere and the big downside risk for oil in recent weeks - recession - is weighing on the price once more.
28-07-2022 11:30 GMT
by Craig Erlam
The New Zealand dollar has pared gains which it made earlier in the North American session. NZD/USD is trading at 0.6266, up 0.02% on the day.
US GDP contracts for a second straight quarter
The US economy contracted in the second quarter by 0.9%, surprising the markets which had forecast a 0.5% gain.
28-07-2022 11:06 GMT
by Kenneth Fisher
OANDA Senior Market Analyst Craig Erlam reviews the latest market news with Jonny Hart. They discuss the Fed, earnings from Alphabet, Microsoft, Meta, Apple and Amazon, and preview the GDP data.
28-07-2022 09:46 GMT
by Craig Erlam
US dollar sinks after FOMC rate hike
There were no surprises from the Federal Reserve, which delivered a second straight 0.75% hike on Wednesday. The markets had priced in this move, although it was a live meeting, as there was an outside chance of the Fed firing a massive 1.00% salvo in order to curb runaway inflation.
28-07-2022 06:58 GMT
by Kenneth Fisher
Oil rises once again overnight
Oil prices climbed once again overnight, boosted by a weaker US dollar and a large drawdown of crude and gasoline stocks in the overnight official US Crude Inventory data. The inventory data was a surprise, and in combination with tumbling Russian natural gas supplies to Europe, it seems the reality that the physical market is as tight as ever is boosting prices.
Brent crude rose 2.45% overnight to USD 107.15 a barrel.
28-07-2022 04:48 GMT
by Jeffrey Halley
Dollar falls on Powell's rate remarks
Jerome Powell’s remarks around rate hikes being driven by data sparked a sentiment rally overnight, as markets priced in peak inflation and interest rates. With equities rallying hard, the haven US dollar resumed its downward correction, being sold heavily versus the G-10 space.
28-07-2022 04:42 GMT
by Jeffrey Halley
Asia markets show modest rise
Fed Chair Powell's post-FOMC remarks saw Wall Street explode higher overnight, led by the Nasdaq. Asian markets are duly following suit, moving higher this morning, but not markedly so, and with nothing like the FOMO rally seen on Wall Street overnight.
28-07-2022 04:33 GMT
by Jeffrey Halley
You had the feeling that Wall Street, with perpetually itchy buy-button trigger fingers, was primed for this FOMC. As expected, the FOMC raised the Fed Funds target by 0.75%, to a target range of 2.25%-2.50%.
28-07-2022 04:24 GMT
by Jeffrey Halley
US stocks extended gains after the Fed signaled that it will likely be appropriate to slow rate increases at some point. Now that traders see light at the end of the Fed tightening tunnel, the Nasdaq is starting to look like the cleanest dirty shirt in what looks like a 2023 recession bound economy.
27-07-2022 15:08 GMT
by Edward Moya
The euro has edged higher on Wednesday, after sliding over 1% yesterday. In the North American session, EUR/USD is trading at 1.0147, up 0.29% on the day.
All eyes on Federal Reserve
The markets are eagerly awaiting the FOMC decision later today.
27-07-2022 10:03 GMT
by Kenneth Fisher
Oil hovers amid recession chat
Oil prices are cautiously higher again on Wednesday, with Brent trading around USD 100 and WTI a little below. It's interesting that the recession narrative is having a significant impact on the crude price, even as the market remains extremely tight.
27-07-2022 08:09 GMT
by Craig Erlam
European stocks are modestly higher on Wednesday, while US futures are making slightly better gains on the back of tech earnings relief.
We're in the midst of a critical 48-hour period for the markets and already there's so much to process. And that's before we even get to the Fed which is undoubtedly the headline event this week.
Tech shares are expected to open strongly, with Microsoft and Alphabet both more than 3% higher in pre-market despite a rare miss on revenue and earnings.
27-07-2022 08:07 GMT
by Craig Erlam
The Australian dollar has edged higher on Wednesday. AUD/USD is trading at 0.6950 in European trade.
CPI rises, but less than expected
Australia's inflation rate accelerated in the second quarter, but the market reaction was muted, as the 6.1% gain was a notch below the estimate of 6.2%.
27-07-2022 07:47 GMT
by Kenneth Fisher